Fuel price increase hits airlines and defense
At least 40 billion dollars in extra costs in global airline budgets
Airlines around the world are grappling with an increase in fuel costs that will impact their budgets by an estimated 40 billion dollars. Suffering such hardships is not only the commercial sector, which in any case could pass on 60 percent of the price increases to passenger ticket prices, but also and especially the government-backed defense sector. This is the most obvious effect of the war between Russia and Ukraine.
The data emerges from a study by US financial consulting firm AlixPartners dedicated to the impact of the Russian-Ukrainian conflict. As for the defense sector: the budgets of the various European countries will have to increase by about 20 percent to reach the 2 percent of GDP target wanted by the Atlantic Alliance. The main focus will be on strengthening stocks of equipment, ammunition, missiles, spare parts for tanks, planes and helicopters.
Europe could benefit from a historic opportunity to reshape its defense industry. "A radical change should be envisaged that will come through a reduction in product development time and a massive investment in manufacturing capabilities", the study center explains.
On this topic see also the article published by AVIONEWS.
AVIONEWS - World Aeronautical Press Agency